Demand 'high' for debut Nigeria bond

Jan 24, 2011

Demand for Nigeria's first international bond issue has been strong among investors, who have seemingly not been dissuaded by concerns over the state of the country's finances.

Finance minister for the nation Olusegun Aganga stated that the ten-year bond - which offers yields of seven per cent, was more than twice oversubscribed, the Financial Times reports.

"It is a debut bond, it shows we have met with international standards getting the deal to market," he remarked, adding that the sale will improve access to long-term funds for the country's corporates and "reinforces" Nigeria's position as one of Africa's leading nations from an economic and political standpoint.

Some of the world's largest investment funds opted to subscribe to the bond, Mr Aganga remarked, however this view has been challenged by research from the news source, which questioned some leading fund managers.

They said they would not be buying the bonds, due to worries over Nigeria's savings.